Tuesday, 6 September, 2011 10:51 PM
Reality Bites: Nation's 20-Somethings
Are Fearful of Their Financial Future Amid 'Slacker' Economy
One in Four Feels Totally Independent and Two in 10 Expect to Retire
Comfortably; PNC Encourages Short-Term Plans for Long-Term Gains
Financial Services, Christine Le Pottier
reality is especially harsh for 20-somethings nationwide as
a mere 23 percent rate themselves as totally independent,
according to a first-ever survey by The PNC Financial Services
-- Financial reality is especially harsh for 20-somethings
nationwide as a mere 23 percent rate themselves as totally independent,
according to a first-ever survey by The PNC Financial Services Group,
Inc. (NYSE: PNC).
Worse yet, only 18 percent of 20-29 year-olds, whose adult lives
began amid the 2008 Great Recession, are confident they will have
enough money to live comfortably when they are ready to retire.
are part of the PNC Financial Independence Survey, which sought
insights into the financial mindset of 20-somethings within Generation
Y, which is projected to outnumber all population segments by 2017.
The unique study
compares the responses within the age group and reveals their financial
concerns are mounting in the early years of adult life. For example,
26 percent of 22-23 year-olds feel optimistic about their personal
financial future and 20 percent are confident about having enough
money for a comfortable retirement. Only 14 percent of their older
peers, at ages 28-29, agree on both points.
keys to financial independence for 20-somethings in today's economy
are: Don't panic now and plan for the future," said Todd Barnhart,
senior vice president, PNC Bank. "At a young age, time is on
your side and you can take full advantage if you manage your spending,
start saving and chip away at any debt."
Jobs, Parents, Worries
are other highlights from PNC's research:
Independence: in total, 23 percent describe themselves
as "totally financially independent." It increases with
age, but starts small at 5 percent for ages 20-21 then 25 percent
for ages 24-25 and 34 percent for ages 28-29.
of Income: Forty percent of the total relies on two or
more sources of income. This includes part-time jobs (57 percent),
full-time jobs (28 percent) plus help from mom and/or dad (21
percent) – 48 percent for ages 20-21 and still 7 percent
for ages 28-29. They also rate parents as their top source of
information about financial matters.
Behind: Half (46 percent) rate themselves as behind expectations
for personal financial success, including 52 percent for ages
28-29. Meanwhile, 26 percent overall feel they are right on target
and 25 percent are ahead.
Money Tips for Millennials
offers the following tips to help Millennials feel more in control
of their financial future:
Time is on your side. You're still young, and it's important that
you're thinking about your financial future, but don't beat yourself
up for not meeting your own expectations. Try to think positively
about your financial goals.
Not all debt is bad, but seriously consider interest rates to
be sure you don't accumulate high-interest debt that can keep
you from using that money to save or invest.
yourself first. Establish a regular savings program.
A 401(k) plan through your employer is a great place to start.
and track spending. It sounds easy, and very basic, but
this can be one of the most difficult things to do consistently.
Make use of online money management tools, such as PNC Virtual
Wallet®, that can help you better manage spending, payments
The PNC Financial
Services Group, Inc. (www.pnc.com)
is one of the nation's largest diversified financial services organizations
providing retail and business banking; residential mortgage banking;
specialized services for corporations and government entities, including
corporate banking, real estate finance and asset-based lending;
wealth management and asset management. Follow @PNCNews on Twitter
for breaking news, updates and announcements from PNC.
Independence Survey was commissioned by PNC to identify attitudes
and behaviors about personal finances among those ages 20-29. The
survey was conducted online within the United States in July 2011
among a nationwide cross section of 2,000 adults in the previously
mentioned age group. Findings are significant at the 95 percent
confidence level with a margin of error of +/- 2.2 percent. The
survey was designed and managed by Artemis Strategy Group.
has been prepared for general informational purposes only and is
not intended as specific advice or recommendations. Information
has been gathered from third-party sources and has not been independently
verified or accepted by The PNC Financial Services Group, Inc. PNC
makes no representations or warranties as to the accuracy or completeness
of the information, assumptions, analyses or conclusions presented
in the report. PNC cannot be held responsible for any errors or
misrepresentations contained in the report or in the information
gathered from third party sources. Any reliance upon the information
provided in the report is solely and exclusively at your own risk.
Source: PNC Financial Services